As the Kansas Legislature convenes on January 13, 2025, lawmakers face key debates, including tax reform and the push for Medicaid expansion. Amid these discussions, one critical priority should be reforming the state’s budgeting process to enhance efficiency, effectiveness, and accountability. Enforcing performance-based budgeting (PBB)—a law passed in 2016 but neglected since then—offers Kansas a proven path to better fiscal stewardship and long-term prosperity.
What Is Performance-Based Budgeting?
Performance-based budgeting allocates resources based on measurable outcomes, emphasizing programs that deliver results rather than focusing on inputs or outputs. This approach ensures that government spending achieves SMART goals—Specific, Measurable, Attainable, Relevant, and Time-based.
Unfortunately, Kansas agencies have failed to align with PBB’s principles. For example, the Kansas State Department of Education (KSDE) lists aspirational goals like “Kansas leads the world in the success of each student,” which are neither measurable nor time-bound. A more effective SMART goal would be: “The percentage of students below grade level will decline from 33% to 10% by 2033.”
The state’s budgeting process often focuses on irrelevant or misleading metrics. KSDE’s emphasis on postsecondary effectiveness, defined as the percentage of students obtaining or pursuing industry certificates or degrees two years after graduation, ignores public education’s primary goal: preparing students for success. This misalignment becomes glaring when only 18% of Kansas ACT test-takers are college-ready in core subjects like math and science.
Similarly, measuring the percentage of licensed educators fails to assess teaching quality or student outcomes. These misplaced priorities, combined with the absence of efficiency metrics, undermine the effectiveness of state spending. Agencies often default to claiming that reduced funding would cause dire consequences without providing a data-driven analysis of costs and benefits.
Recommendations for Budget Reform
To ensure fiscal responsibility, Kansas should adopt a 0% budget increase for all agencies in FY 2026. This baseline forces agencies to prioritize existing resources, eliminate inefficiencies, and focus on outcomes. At the same time, legislators should set a firm deadline—October 1, 2025—for agencies to submit robust PBB reports with measurable goals tied directly to improved outcomes.
Agencies that fail to comply with PBB standards should face an automatic 5% budget reduction for FY 2027. This policy would incentivize adherence to PBB principles while holding agencies accountable for their performance. Kansas can ensure taxpayer dollars are used effectively by tying budgetary decisions to measurable outcomes.
Kansas legislators can draw on successful budget reform models from other states. The American Legislative Exchange Council (ALEC) developed the State Budget Reform Toolkit, which provides a roadmap for implementing fiscally responsible policies. For example, priority-based budgeting, used in Washington State, helped close a $2.4 billion deficit in 2003 without raising taxes. Kansas can create a more efficient budget process by identifying core government functions and funding programs based on measurable outcomes.
Kansas can also improve budget transparency by adopting user-friendly platforms that allow residents to track government spending. Many states have launched transparency websites based on ALEC’s Taxpayer Transparency Act, giving citizens greater insight into how their tax dollars are spent. This should also include passing a strict spending limit with a maximum rate of population growth plus inflation as outlined in KPI’s Responsible Kansas Budget.
Rejecting Medicaid Expansion
Kansas lawmakers must also recognize that Medicaid expansion violates the principles of performance-based budgeting. Kansas must remain one of the 10 states to correctly not expand Medicaid. Across the country, states that have expanded Medicaid have seen ballooning costs without corresponding improvements in health outcomes. For example, expanded Medicaid programs often lead to overcrowded systems, reduced access to care, and higher wait times for patients who rely on the program most.
Expanding Medicaid in Kansas would further strain taxpayer resources, especially as the federal government faces its fiscal crisis. The federal debt now exceeds $33 trillion, and additional Medicaid spending would only exacerbate this burden. Kansas cannot afford to double down on a failed program that delivers poor results while tying the state to unsustainable federal funding promises.
A Vision for Fiscal Responsibility
The 2025 legislative session offers Kansas a unique opportunity to lead by example in fiscal responsibility. Lawmakers can improve government by enforcing performance-based budgeting, rejecting unsustainable programs like Medicaid expansion, and adopting best practices from other states. Kansas residents deserve a government prioritizing measurable results and ensuring that every tax dollar delivers value.
As debates unfold, legislators must focus on reforms that drive accountability, eliminate waste, and empower Kansas to prosper. With bold leadership and a commitment to performance-based budgeting, Kansas can lay the foundation for sustainable growth and economic freedom.
